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Salt Industry Import Packaged for Consumers, PT Garam Ignore Local Products: June 2017

Indonesia lacks salt as much as 2 million tons per year. Based on data from the National Development Planning Agency (Bappenas) in 2016, should be an opportunity by PT Garam as the only state-owned enterprise that regulates the salt trading system to increase production capacity. Especially from the plots of salt farmers' land.

But what happens in the field, imports are often made a choice. As special only for industrial salt needs. Ironically, after coming tonnes, the salt industry only changed packaging to be marketed as consumption salt. This mode is revealed from the raid of PT Garam's warehouse in Gresik by the Police Headquarters. The transfer is done by PT Garam to avoid the 10 percent customs provision imposed on consumption salt, so it is converted into non-taxable industrial salt.

Though this step is counter productive with the government's desire to strengthen food security. For that there needs to be an institution mechanism ready to buy farmers' production. If necessary, the Bulog function is enhanced to secure the national salt stock, so that farmers are no longer playing with low prices during harvest.
Iodine Expensive price, Garut Salt Farmers Complain : April 2014

Farmers' salt in Cikelet, Garut West Java complains. They complained about the high prices of iodine that reach USD 1 million per kilogram (kg). "In fact, iodine was as an extra ingredient that must be present to be mixed with the sea water," said Chairman of Farmers Group Tani Muara Tiga, Jono Sujono to Republika, recently. Currently, as many as 20 people in four villages in the district Cikelet, continue to develop the processing of salt. Four villages were Cekelet Village, Pamalayan, Cijambe, and Cigadog. In the village itself there are four residents Cigadog already started to develop the venture.

Salt processing in the region has been running for the past two years. Initially, the effort was facilitated by Bank Indonesia (BI). Jono said, in the village there is a field of salt, but salt is not any farmer, "he said, based upon the fact that, subsequently tested by the salt farmers of Indramayu is deliberately brought to the Main Page. Apparently, Jono said, the results are even better in Garut, because the levels of salt 5 ppm; while in Indramayu only 3 ppm because it has a lot of contact with the waste.

Chairman of Farmers Group Sawargi, Muldan, also recognizes that the quality levels of salt in the southern ocean, especially Garut region, very nice. Even during the dry season could reach 7 per mile, because it is not mixed with fresh water.

"Now we are still difficulties iodine, must be bought in Bandung. The price of 1 kg of iodine expensive Rp.1 million," complained Muldan. The need for iodine is not too much.

However, according Muldan, iodized salt is a requirement that must be followed if you want to get into the market thereof. To 500 kg of salt, then use only 1 gram of iodine.

For marketing, the salt produced by the farmers still for consumption needs of local residents. They used to use salt for the production of salted fish. "Salt is usually sold at Rp.1, 000 for 1 kg of her," he said.

Iodine Mining in Indonesia
Indonesia Industry Report and Market Research
September 18, 2018
Industry Code : B2604
Forecast to : 2022

Iodine Mining in Indonesia Preparation for the mining and extraction of iodine bearing ground water. The industry's activities include distillation and purification of the mineral extract, which cannot be separated from the mining of iodine.
The primary activities of firms in this industry are:
- Iodine Mining.
PT. Dataindo Inti SwakarsaTelp : (62 - 21) 719 3832
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Jakarta 12720, Indonesia
Chapter Headings US $ Select All
Industry Outlook 60.50
Key Statistics 60.50
Market Characteristics 36.30
Segmentation 36.30
Industry Conditions 60.50
Industry Performance 60.50
Key Competitors 60.50
Key Factors 27.50
Kimia Farma and Mitsui Corp Form Joint Venture BY Adi Teguh & Andryanto Suwismo, 4 Apr 2012, 0.39
Iodium Factory 0.39
Mining Exporters Must Have Permit from Department of Trade 0.39
Opportunities for Investors Opened, Permit Regulations Deregulated 0.39

Report Content

The Iodine Mining industry in Indonesia research report contain trend analysis, statistics, market size information, industry growth rates as well as major competitors.

Major market segments are identified and also those forces affecting demand and supply within this industry. Performance analysis includes emerging industry trends as well as recent results and performance of each key company. Drawing on the depth of information DIS also provides 5 year forecasts for this industry.

The comprehensive study also examines details such as the barriers to entry, operating cost structure, technology & systems and domestic & international markets. Tables and statistics include: Industry revenue, exports, imports, wages and number of companies in the industry, Industry growth and geographic regional data.

KEY STATISTICS 2014 2015 2016 2017 2018
Industry Revenue 107,942 104,367 131,689 158,085 169,151 Rp.Billion
Industry Gross Product 7,016 6,784 8,560 10,276 10,995 Rp.Billion
Number of Establishments 110 120 130 130 130 Units
Employment 109,600 101,200 85 81,000 85,400 Units
Exports 2,856 3,457 6,481 6,521 7,820 Rp.Billion
Imports 10,926 10,899 25,482 30,419 35,880 Rp.Billion
Total Wages 1,425 1,316 1,114 1,010 1,109 Rp.Billion
Domestic Demand 116,012 111,809 150,690 181,983 197,211 Rp.Billion
The data above is sample data only

Cost of Goods Sold 67.13 Gross Profit 32.87
Operating Expense 21.5 Profit (Loss) Before Tax 11.36
Administration 1.58 Depreciation 0.56
Electricity 0.66 Freight 1.99
Fuel, Parking, Toll & Retribution 1.62 Interest 3.09
Land and Building Rental 2.74 Marketing 2.69
Repairs and Maintenance 0.54 Service Fee 0.7
Staff Welfare Allowance 1.38 Other Expenses 0.92
Stationery & Inventory 0.48 Telephone 0.8
Utensils and Equipment 1.24 Wages and Salaries 0.5
The data above is sample data only

Central Java 13.4 DKI Jakarta 6.5
East Java 22.4 North Sumatra 17.9
Papua 2.0 Bali 3.0
South Sulawesi 6.0 West Java 28.8
The data above is sample data only

Chapter Headings

Industry Outlook

A key analysis section, the Industry Outlook outlines expectations for the key industry indicators over the next five-year period.

Key Statistics

The key indicators for the industry for last five years are provided here, and include:
•   Industry Revenue
•   Industry Value Added
•   Employment
•   Establishments
•   Exports
•   Imports
•   Domestic Demand
•   Total Wages

Market Characteristics

Market Size
This section gives the size of the domestic market and the size of the export market for each industry.

This section lists the industry"s major supplier and its major customer industries, with SIC"s (KLUI) for easy reference.

Demand Determinants
Lists the key factors which are likely to cause demand to rise or fall.

Domestic and International Markets
The trend for the size of exports (are they increasing, decreasing, not changing) and the trend for the size of exports as a proportion of turnover. The size of the domestic market (domestic demand) and the proportion of this accounted for by exports
Outlines the trend for the size of domestic demand and the trend for imports as a proportion of domestic demand States the size of the domestic market (domestic demand) and the proportion of this accounted for by imports
Domestic and international markets defines the market for the products and services of this industry, both locally and in other countries. This outlines: the size of the domestic market (domestic demand) and the proportion of this accounted for by imports, the key countries from which imports are sourced (with percentage and relative size if available), the trend for the size of domestic demand and the trend for imports as a proportion of domestic demand, the size of turnover and the size of exports as a proportion of turnover, the key export destinations (percentages and relative importance of these, if available, the trend for the size of exports (are they increasing, decreasing, not changing) and the trend for the size of exports as a proportion of turnover.

Basis of Competition
Gives the key types of competition between firms within the industry. It also highlights competition from substitute products in alternative industries.


Products and Service Segmentation
This details the key products and/or services provided by this industry. Wherever possible, we include an indication as to which of these are the most important to demonstrate which have a more significant influence over industry results as a whole.

Major Market Segments
The key client industries and/or groups are detailed here. Wherever possible, an indication as to which of these are the most important is included. This will highlight the client groups that are most important to the industry. Trends in these client groups may have an important impact on the demand for products and services provided by the SIC, hence they may be important to monitor suggested links

Industry Concentration
This is an indicator of how much industry turnover is accounted for by the top players.

Geographic Spread
This is a guide to the regional share of industry turnover/gross product. DIS calculates this on the basis of turnover or production, however, the number of establishments may be used as a proxy where these are not available.

Industry Conditions

Barriers to Entry
This section outlines factors that can prevent a new company from entering the industry and will also give an indication of the extent to which this occurs.

Taxation refers to all kinds of taxation that are specific or are particularly important to an industry. This includes taxation concessions.

Industry Assitance
Assistance refers to government and/or other measures in place designed to improve the performance of the industry or sections of the industry. (eg grants, subsidies)

Regulation and Deregulation
Where licenses are required to operate in an industry, these will be noted here. Where possible, details regarding the degree of difficulty in obtaining a licence are included. Important issues relating to regulation and deregulation are included here.

Cost Structure
The average costs for a company operating in this industry as a percentage of total revenue.

Capital and Labour Intensity
Provides a guide to the amount of capital used in production/providing a service compared to the amount of labor in the total mix of inputs.

Technology and System
Acknowledges the latest technology and/or systems available to this industry within the country. Technology refers to machinery and equipment (such as computerisation) which enables better and more efficient production. Systems refer to methods of production that also enables better and more efficient production.

Industry Volatility
Industry volatility refers to the year on year fluctuations, which occur in industry output.

This gives an indication of the extent to which the industry is global. As a guide, we base its definition of the level of globalization on a number of factors, some of which include: the level of foreign ownership, the proportion of demand accounted for by foreign operators, and in the case of industries dominated by domestic participants, the volume of production conducted in other countries.

Industry Performance

Historical Performance
This section details previously important events in the development of the industry

Current Performance
This is the key analysis section for the industry over the past five years. The key performance indicators for the industry in question are discussed, providing trends and explanations for occurrences in the industry.

Key Competitors

Lists the Major Players in the industry with key details relating to those players

Key Factors

Key Sensitivities
The sensitivities are factors that are outside of the control of an operator of the industry, but are likely to have significant impact on a business.

Key Success Factors
These are the factors within the control of the operator and which should be followed in order to be successful. Often these may include behavior that will help to minimise the effects of the key sensitivities.

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Table of Contents
About this Report
Key Statistics
Market Characteristics
Industry Conditions
Key Factors
Key Competitors
Industry Performance